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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Mike Buckley who wrote (25754)6/3/2000 11:34:00 AM
From: Mike Buckley  Read Replies (2) of 54805
 
I've been wondering if there has been a period when stocks rose as high when interest rates were rising as has been happening during the last 10 or so months the Fed has been raising rates. Relative to that, I thought just this morning of something that might be a guideline worth considering in the future.

A lot of people in the folder wish they hadn't bought some of the less established companies (Gemstar, Cree, Elon, Rambus, SanDisk, etc.) when the prices were relatively high, noticing that they've fallen a lot more for the most part than more established companies such as Cisco and Intel. I wonder if it wouldn't be a good idea to strongly consider curtailing purchases of younger high fliers at least during times that interest rates are rising. I realize that none of us can consistently predict what interest rates will do, but when we see such red flags as the Fed's Chairman talking about how rising stock values are contributing to consumer-based inflation after rates have already been raised, we at least know that there's no immediate pressure to reduce rates.

Just a thought.

--Mike Buckley
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